Capsim Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Masters
  • Page:
    3
  • Words:
    1987

Table of Contents

1.0 Executive Summary 3

2.0 Introduction 3

3.0 Report Body 4

43.1 Research and development ideation

53.2 Product innovation and life cycles strategy

63.3 Information or idea transference and customer feedback

63.4 Total Quality Management

4.0 Results 7

5.0 Conclusion 8

References: 10

1.0 Executive Summary

Many companies struggle to gain competitive advantage in the industry. Innovation strategy is essential because it has played a crucial role in improving ABC Company in the telecommunication industry. The company has ensured that the existing customers are maintained, understanding the competitors, and improving on the quality of products through research and development. ABC Company has assimilated the three pillars so that they can work in harmony (Piggott 2001, p. 76).

The major recommendation is to improve on innovation and creativity. The company has ensured the innovative strategies are utilized in order to achieve its goals and objectives. Though the company can only focus on one strategy, as the CEO, it was vital to combine the three of them (Floyd 2005, p. 212). This has been beneficial because it has helped achieve consistent growth. Information is crucial because it is growth strategy that has helped outperform the competitors in the industry. Total Quality Management (TQM) is one of the models that have played an important role in improving the performance of ABC Company (Gandossy & Greenslade 2005, p. 15).

2.0 Introduction

Though many companies have been experiencing many challenges, ABC Company has adopted capsim strategies of being innovative in order to improve it sales volume and profit margins. ABC Company has engaged its participants in a competitive and dynamic ways that help the struggling firms into profitable and successful firms (Arlene & Bradshaw 2010, p. 543). Capstone simulation popularly known as Capsim is a focused strategy that will maintain its production capacity, marketing, and financial management. This strategy focuses on improving the general performance of the company by involving all stakeholders especially the employees who will implement all the strategies such as TQM, Research and development ideation, product innovation and life cycles strategy, and customer feedback and Information or idea transference (Lipsitz 1973, p. 123). It gives much attention and interests on improving the quality of products towards improving its performance. ABC Company is proud of the strategies adopted from round 1 to round 4. It has improved from traditional performance, low end, to high-end performance in each segment (Floyd 2005, p. 214).

The desired action is led by the CEO and the other managers during implementation so that a unique company in the industry. The growth rate has been increasing rapidly after the adoption capsim strategies. The traditional rate is 9.2%, low end 11.7%, High End 16.2%, Performance 19.8%, and Size 18.3%. There is high demand of the products due to avoidable prices and improved product quality (Arlene & Bradshaw 2010, p. 546).

3.0 Report Body

3.1 Research and development ideation

The company on research and development, which is one of the innovation strategies the company adopted. This is the centralized creation of new products by sharing information among all the stakeholders. ABC Company involved the employees in decision and idea generation. This was important to the company because it involves nurturing brilliant ideas from all departments where feedback can be directly conveyed to the right people (Lipsitz 1973, p. 124). The feedback needed will help in tracking knowledge management or content management and software management used in the company. Nevertheless, this is a form of business growth strategy that was adopted under the leadership and influence of the CEO. The company used to perform poorly and had loose most of the customers but the strategy helped in improving its performance. The software developed was necessary because of the comprehensive research and development conducted in the company (Clegg 1999, P. 76).

Customers value our services in the telecommunication industry because they can communicate without interruptions or technical problems. Interdepartmental communication and consulted was key to ideation. It created an idea that helped staff focus on areas of their interest. As the CEO, I have been motivating towards improving the standards of the organization. Research and development has been my main focus because I realized this was what was bringing down. Because research is wide, I found it necessary to outsource some product development especially on some components of the company. The improved performance can be seen through the increased prices from $ 30 to $ 40. In year 1, there was 29% increase in the growth rate (Shapiro 2002, p. 123).

3.2 Product innovation and life cycles strategy

This is the strategy the company adopted because it is the second pillar in innovation strategy. Product life cycle varies from industry to industry but, ABC Company has a long life cycle, where the design has been improved. The services and products target different people with different ages because of the specification of the products they want. This can be seen in the pie chart below. The price and positioning improved significantly (Sawyer 2007, p. 54).

Life cycle is significant because it helped the company to upgrade its products in order to outdo the competitors. This was possible by checking at the price, age, and positioning in the market where it incorporated innovative technologies to come up with new products on a quarterly basis (Piggott 2001, p. 78).

3.3 Information or idea transference and customer feedback

This is the third pillar of innovation strategy that ensures ABC Company get a constant stream of ideas and information. With this pillar, it would enhance research and development in the company is maintained (Sanidas 2005, p. 48). Customer feedback was taken care of because customers are the key stakeholders and determinants of success or failure of the company (Clegg 1999, P. 78). Additional channel of getting information from the customers was developed in the company. The system was reliable and efficient (Arlene & Bradshaw 2010, p. 547). The feedback could be used for ideation and improvement of product and service provision in the market. Innovative marketing strategies are used to target customers based on the customer’s feedback and market research to groundbreaking of the innovation strategy. The features can be incorporated to the products so that it can appeal to many customers; hence, increased sales (Bessant & Tidd 2007, p. 34).

3.4 Total Quality Management

Total Quality Management popularly known as TQM is necessary to the ABC Company because it helps to improve the quality of the processes, products, and services. TQM was adopted because it focuses on premises and quality of processes and products offered by the company (Chris 1991, p. 124). TQM involves the employees, top management, customers, and supplier’s expectations. In addition, TQM entails committed leadership, employee involvement, cross-functional training, strategic planning, information and feedback, and process management. ABC Company adopted TQM strategy and it has tremendously improved the performance of the company. This has made the company to be one of the leading and reputed companies in the world (Subburaj 2005, p. 45).

4.0 Results

The findings show that the innovative strategies adopted in the company has improved the performance of the company. The line graph below shows the life cycle of the company. It shows how performance of the company has improved and has gone through full life cycle. The ideal position of the company is 4.0, and importance rating in the market is 43% with size growth of 10.6%. The prices have been increasing from $ 25 to $ 35, which is a growth of 9% where MTBF ranges between 16000 and 21000 representing 19% (Shapiro 2002, p. 125).

Capsim

Capsim 1

Customer’s performance emphasizes performance over size according to the diagram above. It shows how performance has been improving. The prices of the products have improved by 19% and positioning in the market has improved by 29% and MTBF by 43% (Sanidas 2005, p. 48).

Capsim 2

The customer and growth rate of the company is improving rapidly. There are five segments where customers with similar needs are grouped together. There is the beginning segment where growth rate in the industry depends on the upcoming rounds in the Capstone courier (Lipsitz 1973, p. 125). The five segments are the traditional, low end, high end, performance, and size. The growth rate of traditional segment is 9.2%, low end 11.7%, high end 16.2%, performance 19.8%, and size rate is 18.3%. The results section should include appropriate findings (from Capsim), and relevant tables. Descriptive explanations about the results should be included. At the end of each round, there is improved performance due to the adoption of innovative strategy (Holliday 2001, p. 130).

5.0 Conclusion

The growth of the new venture or business is due to the adoption of the innovative strategies. The most important strategies that ensured the company improves its performance include: product innovation and life cycles strategy, Research and development ideation, customer feedback and Information or idea transference, and Total Quality Management (TQM) (Arlene & Bradshaw 2010, p. 548). These strategies helped the company achieve its set goals and objectives. There has been profit, sales, and customer increase in the market. Production capacity too is has been important because the quality and pricing of the products meet customer needs and expectations. These improvements are seen in the improving growth rates. It has improved from traditional performance, low end, to high-end performance in each segment. The involvement of all stakeholders was important in improving the performance of the company in the industry (Bessant & Tidd 2007, p. 38).

References:

Arlene J. L. & Bradshaw, M. J. 2010. Innovative Teaching Strategies in Nursing and Related Health Professions. New York: Jones & Bartlett Learning. Pp. 543-547.

Bessant, J. & Tidd, J. 2007. Innovation and Entrepreneurship. Chichester: John Wiley & Sons Ltd. Pp. 34-38.

Bragg, A. & Bragg, M. 2005. Developing new business ideas – a step-by-step guide to creating new business ideas worth backing. Harlow/London/New York: Pearson Education Limited

Chris, H. 1991. Total quality management: the key to business improvement: a Pera International
executive briefing. New York: Springer. Pp. 123-126.

Clegg, B. 1999. Creativity and Innovation for Managers. Oxford: Butterworth-Heinemann. Pp. 76-79.

Davila, T; Epstein, M. J. & Shelton, R. 2006. Making Innovation Work – How to manage it, measure it, and profit from it. Upper Saddle River: Wharton School Publishing

Floyd, S. W. 2005. Innovating strategy process New York: Wiley-Blackwell. Pp. 212-214.

Lipsitz, L. 1973. The Process of innovation in education. New York: Educational Technology. Pp. 123-125.

Molero, J. Z. & Cantwell, J. 2003. Multinational enterprises, innovative strategies, and systems of innovation. New York: Edward Elgar Publishing. Pp. 65-68.

Sanidas, E. 2005. Organizational Innovations and Economic Growth – organosis and growth of
rims, sectors, and countries. Northampton: Edwar Elgar Publishing Limited. Pp. 48-49.

Shapiro, S. M. 2002. 24/7 Innovation – A blueprint for surviving and thriving in an age of
change. Singapore: McGraw-Hill. Pp. 123-125.

Subburaj. 2005. Total Quality Management. New York: Tata McGraw-Hill Education. Pp. 45.

Sundbo, J. 2001. The strategic management of innovation – a sociological and economic theory. Northampton: Edgar Elgar Publishing Limited. Pp. 96-97.

Thomke, S. H. 2003. Experimentation matters – unlocking the potential of new technologies for
innovation. Boston: Harvard Business School Press. Pp. 54-56.

Articles

Gandossy, R. P., & Greenslade, S. 2005. Leading the way to double-digit growth; Leader to Leader; winter. pp. 15

Holliday, C. 2001. Sustainable Growth, the DuPont way. Harvard Business Review. Pp. 129-130

Olson, M. S; Bever, D. & Verry, S. 2008. When Growth Stalls. Harvard Business Review. P. 50

Piggott, C. 2001. Mexico: Cemex’s stratospheric rise. Latin Finance. Pp. 76-78.

Sawyer, C. S. 2007. The innovation situation; Automotive Design & Production. Vol. 119: 54.

Treacy, M. & Sims, J. 2004. Take command of your growth. Harvard Business Review. Pp. 127- 129

Treacy, M. 2003. Steady rows as it grows. CIO Insight. Pp. 40-43.

Treacy, M. 2004. Returning to double-digit growth. Consulting to Management. Pp. 3-7.

Wiersema, F. & Treacy, M. 1993. Customer intimacy and other value disciplines. Harvard Business Review. Pp. 84-86.